Taxpayer asks:
Hi, I work for a company and am currently deployed to Iraq. I had met the Social Security Cap for withholding mid 2008 and mid year was transferred to our subsidiary. They again withheld my Social Security to the Cap so in effect I paid double the amount I should have. Can I get that overpayment returned from Social Security and if so, how?
Thanks,
Taxgirl says:
The earnings cap for Social Security withholding is $102,000 for 2008 (it’s $106,800 for 2009). There is no earnings cap for Medicare withholding – all wages are subject to Medicare tax.
The overpayment issue depends on the identity of the employer. If you had more than one employer and you had too much Social Security withholding, you may be able to claim the excess as a credit against any income tax due. You’ll claim this on line 65 of your form 1040 (see image below). You’ll add the overpayment together with any estimated payments and credits and subtract those from the tentative tax due. If your overpayment, estimated payments and credits exceed your tax due, you’ll receive a refund.
However, if any one employer withheld too much Social Security withholding, you should not claim this on your tax return: your employer should make an adjustment for you. If the employer does not make an adjustment, you can use Form 843 (available here as a pdf) to claim a refund.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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{ 3 comments… read them below or add one }
If a company has in your file to not issue you a 1099 and you made
at least around 4,000 from said company. It’s like income that was paid
to me wasn’t reported by said company what happens..
I’m confused – why would a company put something in your file to not issue you a 1099?
So if I work for 2 employers but met my limits with one, can I have my second employer not withhold social security tax?